1. What is corporate tax in the UAE and what is the percentage?
Ans: The UAE has introduced a federal Corporate Tax on the net profits of businesses, with the standard rate set at 9% for profits exceeding AED 375,000. Profits up to this threshold are taxed at 0%
2. Will businesses owned by the UAE have to pay corporate tax?
Ans: Yes, businesses owned by UAE nationals are subject to
corporate tax unless they qualify for specific exemptions, such as those applicable to certain free zone businesses or activities involving the extraction of natural resources
3. Who is subject to corporate tax in the UAE?
Ans: Corporate tax in the UAE applies to all businesses and individuals conducting business under a commercial license, including resident companies, branches of foreign companies, and free zone companies that do business with the UAE mainland. It also covers foreign entities and individuals if they engage in a trade or business in the UAE regularly
4. Should individuals and foreigners pay corporate tax?
Ans: Individuals and foreigners who conduct business activities in the UAE under a commercial license are subject to corporate tax. Personal income from employment, real estate, or investments typically does not fall under corporate tax unless linked to a business activity
5. Will UAE Corporate Tax replace VAT in the UAE?
Ans: No, the introduction of Corporate Tax does not replace
Value Added Tax (VAT) in the UAE. Both taxes coexist, with VAT applied to goods and services at different rates depending on the nature of the transaction, while Corporate Tax applies to the net profits of businesses
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